Chambers, Inc

Multiple Choice

Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B) . The following data are given: Services Provided By
Utilities Computer
Direct costs $55,000 $75,000
Services provided to:
Utilities ---- 15%
Computer 25% ----
Operating department A 35% 55%
Operating department B 40% 30%
If the direct method is used, how much computer cost would be allocated to the utilities department?

A) $0
B) $18,750
C) $11,250
D) $ 8,250